All major equities indexes have now turned down for the day, with the Dow off 20 and the SPX off 13.50. The decline is more impressive when percentage moves are considered, with the Dow of 0.16%, yet the SPX is off 1.03%, the Transports off 1.89%, the RUT off 2.28%, the Q's off 1.18% and the XLF off 2.11%.
We are again nearing a new Sell signal in the SPX, as shown in our Proprietary Momentum Change indicators. We are not yet ready to issue short recommendations, although we have sold all long positions this morning. In fact, some of the preferred short equivalents like the QID, SDS, TZA and FAZ are already in new Buy signal condition, but we do not want to recommend a short until the underlying index has turned in a Momentum Change signal.
So, keep the powder dry.. it looks like we are getting ready for some new positions.
Best To Your Trading!
Bill
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